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BITCOIN: The Currency of the Future?

Updated on November 13, 2013
WIth paper currencies failing all over the world, while confidence in governments continues to wain, many are turning to a new freer form of digital currencies that can never be mass produced.
WIth paper currencies failing all over the world, while confidence in governments continues to wain, many are turning to a new freer form of digital currencies that can never be mass produced. | Source

Is Bitcoin the wave of the future? Many believe this new digital currency, uncontrolled by governments, and with a finite produced amount, are the way to go. In fact if you think about it, digital currency is not a new idea. Ever use a bank card, credit card, or other similar method to make a purchase? Then you've made a digital purchase. In fact, only very little actual cash exists in the world, most transactions are nothing more than digital transactions between computers. Direct deposits, automatic payments, the list is endless.

The only problem, these are backed by dollars and currencies that are failing fast and hard and are nothing more than a convenience.

This BITCOIN thing is different. There are only a certain amount of them, so they can never be devalued. But what if more people want to buy them you might be asking? Simple. They are devided into fractional pieces up to eight decimal places. Then those can eventually have a higher value.

What can you do with them? Many merchants are accepting them around the world in place of traditional currencies. There are lists and ways to find those who do.

How do you carry and transfer them? There are current betas and sites that trade them and contain free virtual wallets that you can set up and protect, just as you would an online banking account.

Can I buy and sell them using my regular bank account? If you live in the U.S,. and now many additional countries, you can.

This is where they are so much more valuable. Imagine being able to keep your wealth in a finite currency that can never be devalued by mass production. Further, imagine being able to go anywhere and pay with Bitcoin being able to instantly convert it into whatever local government currency is accepted, or being able to transfer the amount of Bitcoin instantly via smart app. Need hard cash? Simply visit a Bitcoin ATM that converts your coins into any local currency around the world. Traveling? Just find a Bitcoin ATM and withdraw. No transfer fees, no exchange fees, etc. And this is another bonus, sending large or small amounts of money around the world, anonymously I might add. This is attractive to Chinese billionaires who are not allowed to get money out of China, can now do so easily and secretly, making it a lucrative product.

When a friend told me about this, I was initially skeptical. It was introduced to me at .25 US dollars per Bitcoin. Then, I watched as it had a premature breakout up to the $30 range. Then, it seemed to fall back to around $4-$6 dollars per coin. After thinking it would trade sideways, it faded from my thoughts. Then, I checked back in on it, when a different friend mentioned its explosion on Facebook. When I checked it was up to $60 as it is becoming one of the fastest downloaded apps in the world. The next thing I knew it was up over 70, then 80, and now up to the low to mid nineties as this article is written, an interesting development to say the least.

A two year chart shows the longer term progress of this potential new concept and money maker, or wealth security.
A two year chart shows the longer term progress of this potential new concept and money maker, or wealth security.

BITCOIN UPDATES

4/1/13 Since this article was initially written, Bitcoin has continued to take off and increase in value steadily. It is currently as of this update post, at just over $100 US dollars per coin.


4/3/13 Bitcoin shows no signs of slowing and is continuing to climb at just under $125 US dollars per coin.


4/7/13 Bitcoin has continued its sometimes steady and sometimes meteoric rise as it broke through the $150 US dollar mark per coin and is continuing to climb.


4/8/13 Just one week after the first update to this article was posted, Bitcoin continues to ascend rapidly. As of this post each Bitcoin is valued at over $175 US dollars per coin.


4/9/13 Just a little more than one week has passed since this story was initially posted. Bitcoin has not just risen but experienced a parabolic rise that now sees it currently at $220 US dollars per coin.


4/16/13 Bitcoin experienced a parabolic rise and like most markets that rise too quickly a parabolic fall. On April 10th, the major market that sells Bticoin, Mt. Gox, experienced an overload of trades resulting in lag on their system, eventual panic, and then a shutdown causing the price of something they didn't even create or own, but rather facilitate the trading of, to come tumbling down all the way to $120 in just over an hour. The price recovered from there for a little while getting back to $190, but has trended lower and lower with lower highs and lower lows over the past week. As of this post the low on Bitcoin was $50 per coin, while the high was $95 with an average price of $78 and a current price of $82 dollars per coin.


Although Bitcoin has reduced dramatically from its high of $266 just under a week ago, it has still more than doubled since the beginning of March when it was at $34 dollars per coin.


4/24/13 As fast as it fell, it rose from the ashes. Bitcoin began to stabilize around the 70 dollar mark and began gaining traction from there. It hovered around 100 for a day or two before breaking back through. As of this update, Bitcoin is back to $151 US dollars per coin. Additionally, the head of Paypal in connection with Ebay announced that they have been looking very hard at Bitcoin and find it interesting as its security aspects are intriguing. He also said that they are considering whether or not they would accept Bitcoin as a form of payment. If that were to happen Bitcoin would secure it's place in a multibillion dollar market.

5/23/13 Bitcoin has had its ups and downs, but more than a month after its meteoric rise, it sits at approximately $126 US dollars per coin. It also seems to have stabilized as far as fluctuations are concerned, at least recently, as it now usually has highs and lows with a few US dollar range, not the big violent swings that were seen when it blew off the roof just over a month ago. This stabilization is a good things for investors, as the swings are much smaller, but still show a rising tide.


11/7/13 Bitcoin fluxuated for a variety of reasons in the range of about $100 to $140 US dollars per coin for several months. Then two major developments for Bitcoin's explosion happened, a large Chinese exchange was opened over huge demand for Bitcoin in China by investors. This exchange is selling Bitcoin for approximately $50 US dollars more per coin than other world sites, due to Chinese restrictions. Additionally, Bitcoin has been featured in Time Magazine and was on the front page of the New York Times. It has been announced many services will be coming out to support Bitcoin as well as convertable ATMs to convert to any particular local currency as well as Apps for Smartphones for instant payments. All of this equals big potential for this digital currency. As of today, Bitcoin has risen back through its old highs and now is selling for $286 US dollars per coin.

11/13/13 Less than one week after Bitcoin hit new highs, it has continued its parabolic rise, seemingly with nothing in its path. Sold on an exchange unlike the stock market in which traders can manipulate the prices via reverse trades, the Bitcoin exchanges are set off of actual purchases and sales. Therefore, the price cannot be manipulated or controlled except via massive institutional buying or selling. Regardless, there are still only a certain amount of coins in existence. Today the price sits at $378 US dollars per coin.

Stay tuned...

Do you think Bitcoin is a fad, or an early new idea to capture a major part of the world market at an early stage.

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    • WestelCS profile image

      Tim Anthony 3 years ago

      The bitcoin and litecoin concept is still a little bit unclear to me. However, with what so ever I know, I think that bitcoins are obviously a future for trading.

    • TycoonSam profile image

      TycoonSam 3 years ago from Washington, MI

      Excellent Hub. Regarding Bitcoin, I don't like the idea of not being connected to anything tangible.

    • howlermunkey profile image

      Jeff Boettner 3 years ago from Tampa, FL

      I stand corrected, over $800 bucks....as of right now

      http://www.bitcoinexchangerate.org/

    • howlermunkey profile image

      Jeff Boettner 3 years ago from Tampa, FL

      Bitcoin ey? (This is why I need a time machine) --- from .25 up over 378?? Seriously?? I must check this out further, thanks so much for sharing! Up, Like, Pin

    • nicomp profile image

      nicomp really 4 years ago from Ohio, USA

      paper currencies are failing all over the world?